SNAPSHOT2 min read

Sustainable Multi-Asset Fund Update – Q2 2023

Tom Montagu-Pollock, Emilie Shaw and Matt Best provide an update on the second quarter of 2023 for the Sustainable Multi-Asset Fund.

19/07/2023

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainable Investment Specialist

Investors were faced with a challenging environment at the start of the second quarter, as concerns about the health of the US regional banking system, the possibility of a US debt default, and hawkish tones from the Federal Reserve weighed on sentiment. Despite these headwinds, equity markets performed well, with global equities returning +3.3% over the quarter.

Against this backdrop the Fund generated a return of +1.0% for the quarter, taking the return for the 12-month period to +5.4%.

In terms of positioning, given our view that the US will fall into recession late this year, our underweight exposure to equities remains appropriate. We are now slightly overweight government bonds. We have continued to gradually increase the average maturity of our core government bond holdings. This should help protect portfolios if the global economy slows significantly and central banks start to shift their focus from curbing inflation to protecting financial stability and growth.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainable Investment Specialist

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.